Future Challenges. Whilst Magenta Living’s current business plan is strong, there are a number of upcoming challenges to its revenue streams in the future including: • with the continued ‘right to buy’ and selective demolition of non-sustainable homes the organisation needs to be able to build more replacement homes to ensure it continues to have the economies of scale to continue to deliver high quality services. Magenta Living had 13,087 homes at transfer and this has reduced to 12,133 homes as at 31 March 2014. • reduced public subsidy to build new affordable housing will require housing associations to look at raising funding in other ways to provide the ‘subsidy’ for social and affordable rent schemes • with continuing reforms to welfare spending there will be reduced support to rent payers and potentially reduced income which will need to be offset with income from other sources in order for Magenta Living to carry on providing the services presently being delivered • working in more deprived neighbourhoods at a time when competing pressures have resulted in publicly funded services being withdrawn Magenta Living will have to identify new sources of funding in order to provide wider services to support its communities.
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Sources: Proposed New Group Structure Heads of Terms, Proposed New Group Structure Heads of Terms